National Fuel Gas Company (NYSE: NFG) and Enduro Royalty Trust (NYSE:NDRO) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.
This table compares National Fuel Gas Company and Enduro Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Fuel Gas Company||14.24%||18.67%||5.17%|
|Enduro Royalty Trust||20.87%||7.30%||7.30%|
Risk and Volatility
National Fuel Gas Company has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Enduro Royalty Trust has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for National Fuel Gas Company and Enduro Royalty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Fuel Gas Company||0||4||0||0||2.00|
|Enduro Royalty Trust||0||0||1||0||3.00|
National Fuel Gas Company presently has a consensus target price of $57.00, indicating a potential downside of 2.25%. Enduro Royalty Trust has a consensus target price of $4.00, indicating a potential upside of 15.94%. Given Enduro Royalty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Enduro Royalty Trust is more favorable than National Fuel Gas Company.
Institutional & Insider Ownership
69.4% of National Fuel Gas Company shares are held by institutional investors. Comparatively, 57.6% of Enduro Royalty Trust shares are held by institutional investors. 2.6% of National Fuel Gas Company shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
National Fuel Gas Company pays an annual dividend of $1.62 per share and has a dividend yield of 2.8%. Enduro Royalty Trust pays an annual dividend of $0.28 per share and has a dividend yield of 8.1%. National Fuel Gas Company pays out 61.8% of its earnings in the form of a dividend. Enduro Royalty Trust pays out 112.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Fuel Gas Company has increased its dividend for 46 consecutive years.
Valuation & Earnings
This table compares National Fuel Gas Company and Enduro Royalty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National Fuel Gas Company||$1.57 billion||3.17||$812.03 million||$2.62||22.26|
|Enduro Royalty Trust||$8.43 million||13.51||$8.25 million||$0.25||13.80|
National Fuel Gas Company has higher revenue and earnings than Enduro Royalty Trust. Enduro Royalty Trust is trading at a lower price-to-earnings ratio than National Fuel Gas Company, indicating that it is currently the more affordable of the two stocks.
National Fuel Gas Company beats Enduro Royalty Trust on 10 of the 17 factors compared between the two stocks.
National Fuel Gas Company Company Profile
National Fuel Gas Company is a holding company. The Company is an energy company engaged principally in the production, gathering, transportation, distribution and marketing of natural gas. The Company operates in five business segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The Company operates an integrated business, with assets centered in western New York and Pennsylvania, and the production and transportation of natural gas from the Marcellus Shale basin. The Company also develops and produces oil reserves, primarily in California. The Company’s Exploration and Production segment operations are carried out by Seneca Resources Corporation (Seneca), a Pennsylvania corporation. The Company’s National Fuel Gas Supply Corporation (Supply Corporation), a Pennsylvania corporation, and Empire Pipeline, Inc. (Empire), a New York corporation, carry out the Company’s Pipeline and Storage segment operations.
Enduro Royalty Trust Company Profile
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
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